Are A Stock Market Disconnected From Reality & Continued Economic Collapse Priced-In To Silver?

This could finally be silver’s week to shine. Here’s why…

I’d like to share two random thoughts in no particular order of importance.

Because that’s what you’ll get when scanning the mainstream media to start the week: Randomness.

That is to say, we’ve got stock market parties in China and the US because apparently, everything is awesome again, we’ve got the Covid-19 ‘second wave’ full court press, we’ve got the race wars & the systemic destruction of language and culture, we’ve got Trump doing whatever it is again that Trump does, and honestly, I’m not sure how the economic fundamentals get any worse?

Which brings me to my first point: Within all of the randomness, I’m liking this rather refreshing start to the first main week in July.

You see, I had forgotten what the Fourth of July used to be like when celebrating, and this year, I felt a blast from the past, and I’m already looking forward to next year.

When growing up, and as a young adult, the Fourth of July used to be about getting together for some good old-fashioned local fun, shooting off fireworks which, as my luck would have it in the states where I lived, everybody knew were illegal, but it didn’t matter anyway because everybody also knew the legal fireworks sucked, so you had to make that two hour trip to South of the Border, or wherever, for the good stuff.

OK, “Hey Half Dollar, why are you babbling nonsense about your childhood Fourth of July experiences, and what does this have to do with the markets and the economy?”.

Oh, sorry.

Good question.

I have a point to make here: Hearing and seeing fireworks going off all over the neighborhood in the town where I live speaks to “the new normal” in a good way.

This is our second Fourth of July in this house in this neighborhood located in a small town, and I do not recall all of the fireworks that we’re shot off for an extended period of time last Fourth of July, and that’s a good thing.

Here’s what I mean: This localized celebration of the Fourth of July, brought on by the necessity of living amidst the lockdowns, the shutdowns, the cancellations and more, was not about being where to go to see the best regional whiz-bang fireworks display put on after the symphony orchestra played the 1812 Overture, or whatever, but rather, was all about having a good time locally, with friends and family, perhaps grilling some hamburgers and hot dogs, drinking a Bud Light, playing some rock music from the garage and shooting-off fireworks in the street, hoping to heck nobody’s house catches on fire, kind of speaks to the whole “end of globalization” thing, and it speaks to the end of globalization in a good way.

In that sense, the “new normal” for economic activity isn’t a bad thing, it’s just different, and, arguably, more valuable, and I can’t wait to fire off some fireworks next year.

Secondly, people continue to talk about gold as if it’s fairly price here at $1800.

I’d just like to say one thing about that: If one ounce of gold still buys a “fine suit”, then people who say gold is fairly priced at $1800 should actually go try to buy a fine suit for eighteen hundred bucks.

Perhaps they’d get the shoes.

Or the belt.

Therefore, to me, in spite of the rally that has now turned everybody and their brother into gold experts, gold is still very undervalued.

Which means that silver?

Oh my.

This could be the week silver steals the spotlight.

A push through $20 would put all eyes on the white metal:

It’s clear the cartel is holding off for as long as possible before letting silver run, just so they can scoop up as much shiny phyzz while they still can as the perma-bears and shills help the cartel with its stacking by saying, “see, silver’s never going higher because it’s just some stupid commodity”.

Gold’s looking good to start the month of July:

In addition to the whole, current “one ounce of gold buys a fine suit” myth, if you believe the price of gold has been actively suppressed, then there are also massive capital gains to be made when the suppression can go on no longer.

The gold-to-silver ratio is starting the week in the mid-90s:

If this is the week for silver to make its move, then I’d be looking to be under 90 by the end of the week.

If silver makes its move, I’d expect platinum to do the same:

The crisis we’re in right now is the sovereign debt crisis & fiat currency crisis, and as such, platinum, having all of the necessary qualities of being money, will get the flight to safety bid along with gold & silver.

Palladium will likely be stuck in the muck until gold reaches parity with it:

We’re getting closer to parity, and if palladium continues to struggle, we could be there faster than people realize.

That said, like platinum, I expect palladium to perform as a safe haven to this latest financial and economic crisis.

Crude oil is over forty bucks to start the week:

Who’s comfortable saying we’re in the clear, because it’s really only been a few months now since all of the lockdowns and shutdowns began in earnest, and if the MSM is successful in really stoking the ‘second wave’ fears, whatever oil consumption that was recovering could quickly disappear again?

Perhaps, however, copper is telling us the inflationary fires have begun:

This fire will engulf the entire world since no nation on earth uses honest money.

We will, but only after the destructive inflationary fires.

So enjoy the still relatively strong US dollar while you can:

It has been a privilege to stack real metal, for cheap, in dollars, but that opportunity will quickly come to an end.

It looks like zero-point-six is becoming a thing again:

If they actually want rates lower, then dropping the stock market will provide the cartel with the needed cover.

It would be a great time to drop the stock market if fear is any gauge:

Because why would they not come in with some shock-and-awe just as everybody thinks the stock market can only go up?

And it does keep going, and going, and going:

Unless you are on the very inside with direct knowledge of the actual plan, you’ll get burned.

The cartel finds great pleasure in seeing the People’s trading accounts blowing-up.

They do make money to the downside just the same because, well, it’s rigged!

Bottom line as we find ourselves here this beautiful Monday in early July?

There is so much randomness in the economy and the markets now.

To me, this randomness speaks to many market uncertainties.

Moreover, it means silver could really come to shine.

Gold stole the show last week, breaking $1800.

If it’s true what they say: Gold moves first.

It sure seems like it’s now silver’s time.

Silver feeds on the randomness.

And on the uncertainties.

Silver’s the true sanity.

In crazy markets.

That we have?

Right now.

Indeed.

Yes.

Stack accordingly…

– Half Dollar


 

About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, a former amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.

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